S&P 500 earnings revisions are the worst they’ve been since Covid
An update on just how bad US earnings revisions have been, thanks to some new data from Bloomberg: the worst since April 2020.
This chart tracks the share of S&P 500 companies with earnings estimates higher than four weeks ago less the number with lower earnings forecasts, divided by the total number of changes.
The drawn-out slowdown in domestic activity plus the added tariff-induced disruptions are prompting a worse reading in this measure than any point in the bear market of 2022.
All of these cuts to profit projections aren’t causing much scarring at the index level, however. The benchmark US stock index’s bottom-up 12-month earnings estimates peaked at $276.87 on March 31 and have since declined by less than 0.5%.
The drawn-out slowdown in domestic activity plus the added tariff-induced disruptions are prompting a worse reading in this measure than any point in the bear market of 2022.
All of these cuts to profit projections aren’t causing much scarring at the index level, however. The benchmark US stock index’s bottom-up 12-month earnings estimates peaked at $276.87 on March 31 and have since declined by less than 0.5%.
